Is Verizon a Buy?
As the 5G wars heat up, one company that investors should keep a close eye on is Verizon Communications (NYSE: VZ). Although the stock hasn't had the greatest year in 2019, climbing just 6% since January, that could make it a relatively cheap buy. But first, let's take a closer look at how the company has performed of late and what investors can expect from Verizon in the future.
In the company's most recent quarterly earnings, Verizon showed good user growth with 615,000 new postpaid customers added during the quarter, which was well above the 527,000 additions that analysts were expecting. As a result, Verizon's revenue and earnings both beat expectations. However, despite the beat, the company's top line came in at $32.9 billion, which was less than a 1% improvement in sales from a year ago. The consumer segment, which at $22.7 billion was the bulk of Verizon's sales, grew at a rate of just 1.4%, while business-related revenue was flat.
The bottom line saw more of an improvement, as net income of $5.2 billion rose more than 5% from last year's tally of $4.9 billion. The quarter was a good one overall, but it wasn't enough to get investors excited about the stock. In the past month, the stock has declined by around 2%.
Source Fool.com
